Austrian Business Leader Faces Mounting Pressure Amid Salary Scandal and Boycott Calls
Austria’s business community is in turmoil as calls for accountability intensify against Harald Mahrer, President of the Chamber of Commerce, following revelations of controversial salary increases and a subsequent resignation as President of the National Bank. The unfolding crisis has exposed deep divisions within the Austrian People’s Party (ÖVP) and sparked a wave of criticism from entrepreneurs and political rivals alike.
Following widespread calls for his resignation, Mahrer stepped down from his position at the National Bank on Monday, having previously issued an apology to the “press.” However, this move has done little to quell the substantial backlash, even from within his own political ranks.
A crisis meeting of the WKO leadership on Sunday saw Mahrer retain the trust of the ÖVP economic association,which holds a majority within the organization. But, according to reports from “Die Presse,” resistance to mahrer has only grown. “There is a clear consensus that someone has to take responsibility,and Mahrer is the guilty party,” one official revealed.
While no one has yet publicly called for Mahrer’s resignation,a conspicuous lack of public support has emerged. The silence is striking, especially given that no prominent figures have appeared on television to defend him, as noted by another state party representative. “It is up to the business association to solve this,” they stated.
Kurt Egger, General Secretary of the Economic Association and a member of the ÖVP National Council, acknowledged the loss of trust in a written statement to “Die Presse.” “We are fully aware that trust has been lost as a result of the events of the past few days, and we are doing everything we can to restore this trust. We take responsibility and are working with all our might to take the right steps. In intensive dialog with the federal states, we will work constructively together towards this goal.”
The current unrest extends beyond Mahrer’s handling of the planned salary increase, which initially came to light through reporting by “Die Presse.” The substantial salary increases – up to 60 percent in certain specific cases – awarded to state chamber presidents this summer, funded by compulsory contributions from entrepreneurs, have also fueled widespread dissatisfaction. Several ÖVP contry offices believe this situation directly impacts the party’s image. While the increases themselves are viewed as problematic, Mahrer’s actions are considered more serious.
Mahrer’s position within the WKO has long been a source of tension.He has been described as an outsider in some business circles,seen as a loyal party operative installed by Sebastian Kurz without significant entrepreneurial experience. He reportedly never fully achieved the status of his predecessor, Christoph Leitl.
One of Mahrer’s most vocal critics is Stephan Zöchling, head of Remus, who has recently gained prominence through outspoken appearances on television talk shows, particularly targeting Vice Chancellor Andreas Babler (SPÖ). Zöchling has openly called for a boycott of the WKO,and claims that “over 100 companies have followed this call.” He announced a new petition for Wednesday as part of the #togetherstrengthener initiative, framed as a movement “against the extremes of the left and right.”
Simultaneously occurring,the Neos faction within the WKO,the ÖVP’s coalition partner,has presented Mahrer with a series of concrete demands for reform.Michael bernhard, a Neos representative and volunteer at the UN, indicated that Mahrer’s weakened position might make it easier to achieve these goals.
Bernhard, at a press conference on Tuesday, outlined five key reforms, including reducing the nine state chambers to three regional locations in Linz, Innsbruck, and Graz. This restructuring aims to reduce the number of officials and specialist organizations by two-thirds. He also proposed halving or abolishing contributions and phasing out Chamber Levy 2 by 2028. A “fair cap” on total contributions is also being sought,limiting payments to 100 euros for EPUs and 100,000 euros for large companies.
The controversy surrounding Mahrer’s leadership and the proposed reforms signal a period of significant upheaval for the Austrian business community, with the potential for lasting consequences for both the WKO and the ÖVP.
